Expanding Physician Well-Being: How Revised Stark Law Empowers Healthcare Organizations

Posted on September 25, 2023 by Mitchell Best, CEO

Updated November 16, 2023

In the ever-evolving landscape of healthcare, it is crucial for healthcare organizations and physicians to stay informed about the legal frameworks that govern their practices. One such framework is the Stark Law, which plays a significant role in shaping healthcare practices. In this insight, I delve into the core of the Stark Law, its recent modifications, and the potential it holds for healthcare organizations to enhance the well-being of physicians who may have been overlooked.



 The Stark Law, enacted in 1989, prohibits physicians from referring Medicare patients to entities with which they have a financial relationship, unless an exception applies. The primary objective of the Stark Law is to ensure that healthcare decisions are based on medical necessity and patient well-being, rather than personal financial interests. This law also prevented certain entities from developing well-being programs or extending them to those not officially employed but who have privileges with their organization. 

New legislation

The recently passed Consolidated Appropriations Act (CAA) of 2023 has brought significant changes to the healthcare landscape by introducing a new exception under the Stark Law and a safe harbor under the Anti-Kickback Statute (AKS). The new law allows for hospitals to provide mental health or behavioral health improvement and maintenance programs to physicians and other clinicians, AKA physician well-being programs. This allows healthcare organizations and providers to create and execute successful approaches to enhance the well-being of their physician. This is essential in cultivating a healthcare workforce that is healthy, motivated and productive.

National trends and grant availability

These exceptions and safe harbor align with the Lorna Breen Health Care Provider Protection Act, passed in March 2022. The act is named after Dr. Lorna Breen, an emergency room physician who tragically died by suicide during the COVID-19 pandemic. This act authorizes the US Department of Health and Human Services (HHS) to award grants to hospitals and other healthcare entities. These grants are specifically designed to support the development and implementation of physician wellness programs, addressing the unique challenges and stressors faced by physicians. By utilizing these grants, healthcare organizations can create supportive and empowering programs that cater to the specific needs of physicians, promoting their overall well-being.

Why this matters

The changes to the Stark Law, along with the availability of grants, have created an opportunity for hospitals and other healthcare organizations to develop, implement and expand physician wellness programs. By placing emphasis on the well-being of physicians, healthcare organizations can address burnout, elevate physician satisfaction, and elevate the quality of patient care.


We can help

VITAL WorkLife, a leading mental health and well-being expert that understands the unique challenges faced by physicians, stands in full support of the legal changes and the impact it will have on physicians. By implementing well-being programs and expanding physician ability to use these programs, physicians can benefit from a wealth of resources and expertise that can help them navigate the complexities of the healthcare system while maintaining their own well-being.

Through the establishment of well-being initiatives and broadening access to physician well-being programs, more physicians in the United States can gain access to a wide range of mental health resources and specialized well-being services to be their best selves as they help their patients live healthy lives.

Contact us to explore the possibilities for the well-being of your healthcare organization today.

Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. You should consult with your attorney

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